## Definition of

## CPM: Cost per thousand impressions

CPM is a pricing model used in online advertising, where advertisers pay a fixed cost for every 1,000 impressions of their ad.

## Detailed Description of

## CPM: Cost per thousand impressions

Cost per thousand impressions (CPM) is a pricing model used in product management to measure the cost of an advertisement or campaign based on the number of impressions it receives. It is calculated by dividing the total cost of the advertisement or campaign by the number of impressions it receives, and then multiplying that number by 1,000. For example, if an advertisement costs $100 and receives 10,000 impressions, its CPM would be $10 ($100/10,000 x 1,000). CPM is often used to measure the effectiveness of an advertising campaign or product launch. It can help product managers determine how much they should spend on a particular campaign or product launch in order to maximize their return on investment (ROI). Additionally, CPM can be used to compare different campaigns or products in order to determine which one is more cost-effective.

## Examples of

## CPM: Cost per thousand impressions

Let's say a company wants to advertise their product on a website. They decide to use CPM and agree to pay $10 for every 1,000 impressions of their ad. This means that if the ad is seen by 10,000 people, the company will pay $100 for the campaign. If the ad is seen by 100,000 people, the company will pay $1,000 for the campaign.